Farmer’s placard at a London protest earlier this week (Image: Getty)
Around 40 Labour MPs have written to Rachel Reeves raising concerns about changes to inheritance tax for farmers. The “rural growth group” has a meeting with Treasury on Thursday afternoon to voice their anger over changes anounced at October’s Budget.
It comes days after thousands of farmers marched through Whitehall demanding the Government U-turn on it decision.They have called for the £1 million threshold to be raised to protect smaller family farms, and for an “amnesty” for older and ill farmers. Several have threatened to “go public” if the Treasury fails to offer concessions on the policy in a meeting with the group on Thursday afternoon.
A number of Labour MPs have already publicly voiced their opposition to Labour’s inheritance tax raid.
The Chancellor in October announced that from April 2026, combined agricultural and business property assets up to £1 million will still receive 100% relief but anything above that will be taxed at an effective rate of 20%.
The Daily Express’s Save Britain’s Family Farms crusade has demanded a U-turn.
Some hold seats with at least some part of them being rural.
One Labour MP said: “Our message will be, ‘if you’re not going to let us challenge you through the channels that exist for loyal backbenchers then we’re going to show our muscle’. There’s one last chance to put this right before things blow up. At the moment we’re just met with a wall of arrogance.”
Most of the MPs pushing for a change are in a “rural growth group” on Whatsapp and have taken part in several meetings with Treasury ministers.
A Government spokeswoman said: “Our commitment to farmers remains steadfast.
“This Government will invest £5 billion into farming over the next two years, the largest budget for sustainable food production in our country’s history. We are going further with reforms to boost profits for farmers by backing British produce and reforming planning rules on farms to support food production.
“Our reform to Agricultural and Business Property Reliefs will mean farmers will pay a reduced inheritance tax rate of 20%, rather than the standard 40% for other businesses, and payments can be spread over 10 years, interest-free. This is a fair and balanced approach, which fixes the public services we all rely on, affecting around 500 estates a year.”